Ethiopia Spearheads Comprehensive Energy Diplomacy in Africa

Ethiopia’s Energy Diplomacy refers to the strategic use of its energy resources–particularly hydropower–as a tool for advancing its national interests, regional cooperation, and foreign policy goals. This approach plays a significant role in shaping Ethiopia’s position within the Horn of Africa, the Nile Basin, and across Africa. The term hydro-diplomacy is an element of Ethiopia’s diplomacy used to mean energy diplomacy but the author prefers to use energy diplomacy in this contribution as it will help to explain that there are other natural energy sources in Ethiopia including geo-thermal energy, wind farms and solar energy which is abundantly available in the country.

Ethiopia possesses vast renewable energy resources, positioning the country as a potential leader in sustainable energy development in Africa. The nation’s renewable energy portfolio includes hydropower, wind, solar, and geothermal sources, each contributing to Ethiopia’s energy mix and economic growth.

Hydropower is one of the most important renewable energy resources in Ethiopia. Naturally endowed with 12 river basins, the nation can even cover vast areas of Africa with huge hydropower potential which is estimated at 45.000 MW. Hydropower accounts for 90% of the national energy generation

Major projects include: Ethiopian Renaissance Dam (GERD): Planned capacity of 5,150 MW; began partial operation in 2022, Gilgel Gibe III Dam: Capacity of 1,870 MW Koysha Hydropower Dam: Anticipated capacity of 2,170 MW. Ethiopia has a potential for wind farms estimated at 1,351,000 MW Current Projects include Ashegoda Wind Farm: Approximately 120 MW Adama Wind Farms I & II: Each with a capacity of 51 MW

Ethiopia has high solar irradiance with an estimated potential of 1,350,000 MW The Government is scaling up solar energy programs aiming to develop up to 500 MW of solar power.

The country possesses Approximately 10,000 MW of geothermal resources, leveraging the East African Rift Valley

Current projects include Aluto Langano Geothermal Plant: Operational with 8 MW capacity and Corbetti and Tulu Moye Projects: Each planned for 150 MW capacity.

Ethiopia’s energy diplomacy, just like other forms of the country’s diplomatic activities has become an important component of the nation’s foreign policy and diplomatic initiatives across the globe and in Africa.

The energy diplomacy of the country effectively synchronizes with Ethiopia’s leading role in promoting African integration in the realm of development of renewable energy resources both for the country and for the Horn of Africa. Energy diplomacy of the country is based on the principles of sharing resources for mutual development and regional peace.

Ethiopia’s energy diplomacy is a component of the national foreign policy strategy in fulfilling economic pan Africanism and the main strategies inscribed in Agenda 2063. What are the key pillars of Ethiopia’s energy diplomacy?

The importance of Ethiopia’s energy diplomacy rests on several aspects of Ethiopia’s foreign policy and diplomacy.

Grand Ethiopian Renaissance Dam (GERD): GERD is central to Ethiopia’s energy diplomacy. It aims to generate over 6,000 MW of electricity, making Ethiopia a regional power hub. It is now under the final stage of completion. It has geopolitical implications, especially in relation to Nile Basin countries like Egypt and Sudan.

Ethiopia exports electricity to Sudan, Djibouti, and Kenya–and has plans to extend to South Sudan and Tanzania. This positions Ethiopia as an energy exporter and fosters regional interdependence and peace. Ethiopia has prioritized renewable energy (hydropower, solar, wind, geothermal) in its Green Legacy and Climate Resilience strategies. Its image as a clean energy producer enhances its international profile and attracts green investment.

Ethiopia works with regional bodies like the Eastern Africa Power Pool (EAPP) and the African Union, advocating for energy cooperation and sustainable development. The country collaborates with global partners like the World Bank, AfDB, and China.

What therefore are the economic and diplomatic significance of Ethiopia’s energy diplomacy? Energy exports bring in much-needed foreign exchange. It encourages large-scale investment in transmission lines, substations, and roads. It creates jobs in construction, engineering, and energy sectors and Positions Ethiopia as a key factor in global climate diplomacy. Energy interdependence promotes dialogue and reduces conflict risk in the region.

In recent times, the government has started to sell its power to its neighboring nation Kenya in addition to the previously agreements with Sudan and Djibouti. On November 2023, Ethiopia has officially started exporting its power to Kenya. According to reports, the long-awaited power sale to Nairobi came true after Ethiopia conducted a successful test run of electricity supply to Kenya via the 500KV cross-border transmission power line built to link power grids of the two neighbors. The Ethiopian Electric Power (EEP) stated that Ethiopia has completed activities to ensure uninterrupted and reliable transmission of power to Kenya while noting that Kenya will similarly execute and implement pending activities on its part.

The government sets a long- term plan to generate adequate income from its electric power exporting scheme. For instance, Ethiopia, as to reports, plans to earn around $100 million annually from electricity exports to Kenya. Kenya also signed a 25-year power purchase deal with Ethiopia to import 600 megawatts of electricity from Ethiopia.

The deal, which runs until 2047, between Kenya and Ethiopia is a kind of a deal that approves mutual benefit for both nations. The deal makes Ethiopia Kenya’s second biggest source of hydropower.

Kenya has turned towards cheaper sources of electricity in a bid to edge out the expensive electricity from independent power producers and ensure buffers to meet peak demand. Dubbed Ethiopia-Kenya Transmission Interconnection Line, the 1,045km long electricity highway has the capacity to transmit up to 2,000 megawatts. The project is part of the Eastern Africa Power Pool (EAPP), a regional institution established in 2005 to coordinate cross-border power trade and grid interconnection among nations of the Eastern Africa region.

Ethiopia’s energy diplomacy is an important component of the integrated foreign policy and diplomacy of the country adding up to the promotion of the national interest of the country across the globe and in the African region. On the other hand energy diplomacy is instrumental in promoting other components of the national diplomacy of the country including public diplomacy to promote people to people relations particularly with the neighboring countries. This will help to ensure regional peace and stability in the midst of politically turbulent and volatile Horn of Africa.

Ethiopia has actively participated in the formation of NBI which has already developed into the Nile Council. This gives Ethiopia an opportunity to share her experience on the development of cheaper renewable energy resources and particularly on further developing hydropower resources among the Nile Riparian countries.

Africa is already short of energy resources that are needed for manufacturing industries in the continent and using the natural, renewable and cheaper energy resources is important for self-reliance in the sector instead of depending on fossil fuel resources which have become expensive due to various reasons.

Africa cannot rid itself of poverty, food insecurity and other development requirements unless the nations can cooperate in the area of energy development suited to African capacity and needs.

Developing clean and renewable energy resources for Africa certainly requires peaceful and mutually beneficial and sustainable strategy. Ethiopia has come along a long way in not only developing hydroelectric power but also other forms of energy development.

Ethiopia’s energy diplomacy is based on charting out common development programs which can benefit participating countries.

Africa’s Agenda 2063 on energy development focuses on ensuring access to affordable, reliable, sustainable, and modern energy for all, while transitioning to a clean energy system based on renewable sources. This is achieved through initiatives like the African Single Electricity Market (AfSEM) and the Continental Power Systems Masterplan (CMP). These programs aim to drive sustainable socio-economic development, industrialization, and regional integration through robust continental power infrastructure.

Access to sustainable, renewable Energy is seen as a key driver for economic growth and development and that is why Ethiopia pushes forward for the development of the sector at national and regional levels.